Company Reports

At its Sept. 30 investor day, Cigna's team reiterated 2026 financial goals and highlighted a plan to return earnings growth back to its long-term target range of 10%-14% starting in 2027, culminating in adjusted EPS of at least $45 per share by 2030.

With its roots in health insurance and the late 2018 merger with top-tier pharmacy benefit manager Express Scripts (now called Evernorth), Cigna provides healthcare-related services through customizable programs sold primarily to employers and other insurers. We think its strategy of reducing medical cost growth should resonate well with existing and potential clients. Its position as a leading provider of specialty pharmacy offerings, which is one of the fastest-growing areas of healthcare, puts it in a unique position of being able to help its clients control that fast-growing end market.

After several years of elevated utilization that has not been fully offset by rate increases yet, covered MCO shares have risen about 35% on average since our last managed care industry report in September 2025, in anticipation of rising profits in at-risk medical insurance plans.

Cigna reported second-quarter financial results that included 7% revenue growth and 8% adjusted EPS growth. Management also increased its 2026 outlook slightly and now expects adjusted EPS of at least $30.45 in 2026, or a $0.10 increase from prior expectations.

Cigna reported first-quarter results, including 5% revenue growth, 12% adjusted operating income growth. and 16% adjusted EPS growth. Management also raised 2026 guidance slightly, including adjusted EPS of at least $30.35, up from at least $30.25 previously.

With its roots in health insurance and the late 2018 merger with top-tier pharmacy benefit manager Express Scripts (now called Evernorth), Cigna provides healthcare-related services through customizable programs sold primarily to employers and other insurers. We think its strategy of reducing medical cost growth should resonate well with existing and potential clients. Its position as a leading provider of specialty pharmacy offerings, which is one of the fastest-growing areas of healthcare, puts it in a unique position of being able to help its clients control that growing end market.

After hours on April 6, the Centers for Medicare & Medicaid Services released its final rate notice for the 2027 Medicare Advantage program, which included a 2.5% overall increase, compared with a flat initial rate notice in late January.

With its roots in health insurance and the late 2018 merger with top-tier pharmacy benefit manager Express Scripts (now called Evernorth), Cigna provides healthcare-related services through customizable programs sold primarily to employers and other insurers. We think its strategy of reducing medical cost growth should resonate well with existing and potential clients. Its position as a leading provider of specialty pharmacy offerings, which is one of the fastest-growing areas of healthcare, puts it in a unique position of being able to help its clients control that growing end market.

On Feb. 4, the Federal Trade Commission announced a new regulatory agreement with Cigna's pharmacy benefit manager that avoided monetary penalties or an admission of wrongdoing. On Feb. 5, Cigna reported fourth-quarter results that included 10% revenue and 22% adjusted EPS growth.

After hours on Jan. 26, the Centers for Medicare & Medicaid Services released its initial rate notice for the 2027 Medicare Advantage program, which included a flat overall rate increase rather than the 5% increase in 2026. Most of that differential is related to new risk assessment-related changes.

On Nov. 9, the US Senate agreed to terms that would reopen the US federal government after a record shutdown period. However, the solution did not include a plan to extend federal subsidies on the individual exchanges.

Cigna reported third-quarter results, including 10% revenue and 4% adjusted EPS growth. Management also reiterated its 2025 outlook, including at least $29.60 for EPS, and gave an initial view of "growth" for 2026. Cigna also introduced a rebate-free pricing plan for its pharmacy benefit manager.

With its roots in health insurance and the late 2018 merger with top-tier pharmacy benefit manager Express Scripts (now called Evernorth), Cigna provides healthcare-related services through customizable programs sold primarily to employers and other insurers. We think its strategy of reducing medical cost growth should resonate well with existing and potential clients. Its position as a leading provider of specialty pharmacy offerings, which is one of the fastest-growing areas of healthcare, puts it in a unique position of being able to both control and benefit from the rise of that end market.

MCO shares have been volatile in 2025 due to surging medical utilization and new regulatory threats. Elevated medical utilization has cut profits in most medical insurance end markets, and several potential policy changes could hurt Medicaid, individual plans, Medicare Advantage, and the PBMs, too.

With its roots in health insurance and the late 2018 merger with top-tier pharmacy benefit manager Express Scripts (now called Evernorth), Cigna provides healthcare-related services through customizable programs sold primarily to employers and other insurers. We think its strategy of reducing medical cost growth should resonate well with existing and potential clients. Its position as a leading provider of specialty pharmacy offerings, which is one of the fastest-growing areas of healthcare, puts it at the unique position of being able to both control and benefit from the rise of that end market.

In the second quarter, Cigna turned in revenue growth of 11% and adjusted EPS growth of 7% to $7.20, which mildly exceeded FactSet consensus of $7.16. Management stuck to its previous 2025 outlook for adjusted EPS of at least $29.60 per share.

On May 11 and 12, Republicans revealed updated regulatory stances that included plans to lower drug prices and pull back on Medicaid spending by about $715 billion over the next 10 years versus $880 billion expected previously.

Cigna delivered 14% revenue growth and 4% adjusted EPS growth in the first quarter, as surging medical utilization in its employer plans hurt its medical cost ratio year over year. However, profit trends were better than management expected, and the company raised its adjusted EPS guidance slightly.

Over the past week, tariff-related news has created significant volatility in the US market, including in medical services-related firms like managed care organizations, caregivers, and medical suppliers.

Late on April 7, the Centers for Medicare and Medicaid Services released its final reimbursement rate notice for Medicare Advantage, highlighting an expected change in per capita revenue of 5.06% in 2026 even after risk-related adjustments. This is up from 2.23% in the January initial rate notice.